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Why do competitors open their stores next to one another? - Jac de Haan

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Why are all the gas stations, cafes and restaurants in one crowded spot? As two competitive cousins vie for ice-cream-selling domination on one small beach, discover how game theory and the Nash Equilibrium inform these retail hotspots.

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TED-Ed Original lessons feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed original? Nominate yourself here »

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Jac de Haan

Educator

Luke Rowsell

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Additional Resources for you to Explore

John Nash, a famous mathemetician, wrote a paper that defined Nash Equilibrium.

About TED-Ed Originals

TED-Ed Original lessons feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed original? Nominate yourself here »